India has requested the European Union to provide relief from planned restrictions on metal scrap exports, as domestic steel and aluminium manufacturers warn that the proposed curbs could tighten raw material supply, increase production costs, and dilute benefits from the recently concluded trade agreement.
Under the EU’s revised waste shipment regulation, exports of non-hazardous waste to countries outside the OECD group are set to be restricted from May 2027.
These exports will be allowed only if approved by November 2026. Additionally, the European Commission is considering separate measures to restrict aluminium scrap exports, with final decisions expected later this year.
According to a report by Reuters, industry stakeholders in India have raised concerns that the EU is a crucial supplier of high-quality ferrous and aluminium scrap.
Any reduction in exports, they argue, could lead to supply shortages and higher input costs for domestic manufacturers.
India and the European Union are also in the process of implementing a trade agreement expected to take effect next year.
While the deal does not directly address EU carbon border adjustment mechanisms, Indian officials expect the EU to avoid policy actions that could negatively impact key industries.
According to officials, India has formally applied to retain access to recyclable materials under the new regulatory framework.
Discussions have also been held with the trade ministry by industry representatives, who are seeking safeguards against supply disruptions.
One government official indicated that export quotas, rather than a complete ban, could be a possible compromise.
India, the world’s second-largest crude steel producer, imported about 366,000 tonnes of aluminium scrap from the EU in 2025 and was the bloc’s largest buyer in early 2026.
Meanwhile, European Aluminium has supported tighter export controls, noting that EU aluminium scrap exports reached a record 1.27 million tonnes in 2025, nearly 50% higher than 2019 levels.
It also pointed out that recent export restrictions by the UAE could further tighten global supply, as India sources a significant portion of scrap from Gulf countries.
Industry bodies in India have warned that rising “resource nationalism” could disrupt global scrap flows, increase procurement costs, and intensify competition among importing nations for critical recycled metals.